Prémiový dluhopis RESPONSIBLE 5

ISIN: AT0000A2NPR1  

 
2021/03/08 00:00:00
Bid Ask
97.50 100.00
Minimum yield -
Difference 0.00%(0.00)
General attributes
Type of bond Structured bonds and notes
Bond style senior
Issuer type financial institution
Country of issue AT
Current coupon 0.000%
Coupon style variable
Coupon payment date 2026/03/12
Coupon payment period at maturity
Yield to maturity p.a. (before capital gains tax) -
Value date 2021/02/03
Maturity 2026/03/12
Repayment value 100
Currency CZK
Nominal value 10,000
Capital gains tax -
EU withholding tax Yes
Accrued Interest 0
since inception


Performance since inception. Performances under 12 month have only little informative value because of the short maturity. Information about previous performance does not guarantee future performance.
Source: Česká spořitelna, a. s.
Advantages Details you should be aware of

Why buy Prémiový dluhopis RESPONSIBLE 5?

  • Interesting yield potential of up to 40% for its duration.
  • 80% participation on the regularly monitored development of a widely diversified underlying asset – Solactive ERSTE Green Invest Index VC index.
  • Regular observation of the underlying asset. Final yield is calculated as 80% participation from the average annually fixed values of the monitored underlying asset.
  • Even with a greater fall in the underlying asset at least 100% of PD RESPONSIBLE 5 nominal value (see Note) is always paid out at maturity thanks to guarantee.
  • Immediate availability of funds. You can sell PD RESPONSIBLE 5 subject to standard market conditions, through Česká spořitelna at any time before maturity, for the market price shown in the Exchange Rate List of Česká spořitelna. However in such a case the price may fluctuate even below 100% of its nominal value. The payout guarantee of a minimum of 100% of its nominal value (see Note) applies only to the maturity date.
  • PD RESPONSIBLE 5 is issued in Czech crowns, the investor does not bear the currency risk.
  • Electronic version of the prospectus is published on the Issuer´s website www.erstegroup.com or on www.investicnicentrum.cz/prospekty
  • Key Information document can be found on the author´s website www.erstegroup.com or on the investment portal of Česká spořitelna www.investicnicentrum.cz.
  • PD RESPONSIBLE 5 is a structured Premium Bond with a minimum return of 100% of its nominal value (see Note) at the maturity date.
  • The issuer is Erste Group Bank AG (S&P's A / Moody's A2 / Fitch A)
  • The holder of PD RESPONSIBLE 5 bears the issuer´s credit risk. The 100% payout of its nominal value depends on the ability of the issuer to meet its commitments tied to this security in case of insolvency or due to an administrative measure, or if you sell the Premium Bond before its maturity. It is possible that you could lose the entire invested amount.
  • Underlying asset: Solactive ERSTE Green Invest Index VC
    Participation: 80% on the regularly observed development of the underlying asset
  • Guarantee: 100% of the nominal value of PD RESPONSIBLE 5 at the maturity date (see Note)
  • Maximum payout: 140% of RESPONSIBLE 5 nominal value
  • Selling price: 100%, without a fee
  • Formula for calculating the value at maturity: 100% of PD RESPONSIBLE 5  nominal value + 80% participation × (average value from 5 observations of the underlying asset /initial value – 1), minimum 100%, maximum 140%
  • Liquidity: daily according to current market prices published in the Exchange Rate List of Česká spořitelna, a.s.
  • You can find the date of fixing the initial value of the underlying asset and the dates of observation in the leaflet.
  • Product costs valid at the issue date (You will find the precise expression of the product costs in the Instruction for Purchase of PD RESPONSIBLE 5): 0.54% annually
Description

Interesting yield potential of up to 40% in five years with a minimum return of 100% of the nominal value (see Note) of PD RESPONSIBLE 5 at the date of its maturity.

ESG is the key “investment theme” for Prémiový dluhopis RESPONSIBLE 5. Its yield depends on the trend of the Solactive ERSTE Green Invest Index VC global index, which is diversified into six underlying assets – ESG stock (USA, Europe, Japan, Emerging Markets) with a 60% weight of the portfolio and ESG bonds (corporate and corporate high yield bonds) accounting for 40% of the portfolio. The individual assets in the index portfolio are represented by the ETF (exchange traded funds) iShares from the reputable company BlackRock. The portfolio is so robustly diversified from thousands of the company’s shares and bonds which meet the strict ESG criteria of the MSCI SRI indexes (Socially Responsible Investment). The control of the portfolio’s volatility stabilises the yield and limits the losses during slumps on markets when the set algorithm targets 7% volatility and compares it with the historical volatility of the monitored portfolio. At high volatility this mechanism reduces exposure to dynamic assets and transfers funds to the money market.

For more information see the leaflet.

Payment notes

How does PD  RESPONSIBLE 5 work?

  • The yield of five-year PD RESPONSIBLE 5 depends on the development of the global Solactive ERSTE Green Invest Index VC index.
  • The initial value of the underlying asset shall be fixed on 3 March 2021.
  • The underlying asset is observed annually. Each year its value is recorded on the observation day.
  • The average value of the underlying asset is calculated from these 5 values acquired during individual days of observation. This is then compared to its initial value.
  • The total amount of the payout at maturity is calculated: 100% of the nominal value of PD RESPONSIBLE 5 + 80% participation × (average value of 5 observations of the underlying asset/ initial value – 1).
  • Even with a greater fall in the underlying asset at least 100% of PD RESPONSIBLE 5 nominal value (see Note) is always paid out at maturity thanks to the guarantee.
  • For the duration of PD RESPONSIBLE 5 its price may fall even below 100% of its nominal value with regard to the development of the underlying asset and market conditions.
  • The maximum amount of the premium is fixed at 40% of the Premium Bond nominal value for the duration of PD RESPONSIBLE 5, i.e. for 5 years.
  • Regular annual observation and averaging of the acquired index values partly protect the investor from any sharp fall of prices of the observed underlying asset just before maturity. The total yield does not depend only on the closing value of the observed underlying asset, but on the continuous value of the underlying asset throughout the duration of PD RESPONSIBLE 5. However regular observation can also reduce the resulting yield (if for example there is a rise in the underlying asset just before maturity).

You will find examples of scenarios at maturity in the leaflet

Settlement
  • The maturity date of the Premium Bond shall be on 12 March 2026
  • The disbursement of the yield and nominal value shall be conducted by Česká spořitelna
  • Liquidity: daily according to current market prices published in the Exchange Rate List of Česká spořitelna, a.s.
  • It takes 3 working days to settle the buying and selling of the Premium Bond
Secondary market
  • Minimum purchased amount: 1 piece
  • Price for the provision of redemption: 2% of the transaction volume
  • The Premium Bond can be sold even prior to the maturity date for price in the Exchange Rate List of Česká spořitelna which you can find here at the Investment Centre/Exchange Rate Lists
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Note: The payout of 100% of the nominal value depends on the issuer being able to meet its commitments tied to this security in case of insolvency or due to an administrative measure, or if you sell the Premium Bond before its maturity.
Note 2: The product’s risk weight is on a scale of increasing values from 1 to 7, where value 1 represents potentially the lowest risk and yield, and value 7 the potentially highest risk and yield, provided that you hold the product until its maturity date. The real risk may significantly differ in case you sell the product prematurely. The product risk weight is a guide for a comparison of the risk rate of this product compared with other products. It shows how likely it is that you can lose money as a consequence of movements on the markets, or because the issuer will be unable to meet his commitments.

 
Disclaimer
In the period before maturity, the bond price can fluctuate above and below the bond face value depending on the development of the interest rate and underlying asset. A bond can ben sold even before the maturity date, for the price pursuant to the pricelist of the issuer. Our consultants will give you detail information on the advantages and risks of investment in bonds. The information sources used are generally regarded as reliable, although Česká spořitelna and Erste Group Bank AG cannot guarantee the correctness and completeness of the information contained therein. The aim of this web page is to give information on the services and products contained therein; it is not a binding proposal establishing any rights and obligations for participants. All information you can find here is of informative nature only. Before using the web page for investment, a specialized Česká spořitelna consultant should be consulted.